Eurozone money markets now price in 30 basis points of the European Central Bank (ECB) rate hikes by December 2022, according to Reuters.

Earlier in the session, the data published by Eurostat showed that the annual inflation in the euro area, as measured by the Harmonised Index of Consumer Prices (HICP), rose to 5.1% in January from 5% in December. This print came in higher than the market expectation of 4.4%.

Market reaction

EUR/USD preserves its bullish momentum during the European trading hours and the pair was last seen rising 0.35% on the day at 1.1309.